by James Stevenson -

MICROCAPITAL BRIEF: Stanbic Bank Uganda, IFAD Seek to Reduce Costs of Remittances via FlexiPay E-wallet, Encourage Adoption via SACCOs

Kampala-based Stanbic Bank Uganda and the UN International Fund for Agricultural Development (IFAD) have announced a partnership with the goal of reducing the cost of remittances to Uganda from other countries. In particular, the aim is to

by Elva Montelongo -

MICROCAPITAL BRIEF: Credit Bank, FSD Kenya Engaging SACCOs in Effort to Reduce Remittance Costs for Rural Kenyans

The UN’s International Fund for Agricultural Development (IFAD) recently announced a pair of programs that will operate in Kenya under the EU’s Platform for Remittances, Investments and Migrants’ Entrepreneurship in Africa (PRIME Africa). In particular, IFAD will fund

by Renata Samadova -

MICROCAPITAL BRIEF: Kwara of Kenya Raises $3m in Equity to Boost Technology for SACCOs, Acquires KUSCCO Software Subsidiary

Kwara, a woman-led financial technology (fintech) company serving credit unions in Kenya, the Philippines and South Africa, recently raised USD 3 million from its previous investors DOB Equity, Globivest and Willard Ahdritz plus a group of

by Divya Deshmukh -

MICROFINANCE EVENT: Africa SACCOs Week; April 25-27, 2022; Nairobi, Kenya

Africa SACCOs Week focuses on the development of Savings and Credit Co-Ooperatives (SACCOs) in Africa. A SACCO is a “member-based financial institution which operates on cooperative values, identity and principles, which include social responsibility, openness, honesty and caring for each other.” The theme of this year’s conference is

by the MicroCapital Team -

SPECIAL REPORT: In Democratic Republic of Congo, Microfinance Institutions (MFIs) Notch Profitable Year After 2017 Losses, but Concerns Remain that SACCOs “May Disappear” from DRC

According to data from the Central Bank of Congo, the microfinance sector in the Democratic Republic of Congo (DRC) includes 102 microfinance institutions (MFIs), of which 82 are savings and credit cooperatives (SACCOs) and 20 are organized as for-profit firms, such as limited liability companies. These institutions

by Petra Barbu -

MICROCAPITAL BRIEF: Uganda Development Bank to Issue “Small” Loans to Agricultural Businesses, Ugandan Regulators to Boost Enforcement of SACCO Regulations

The Finance Minister of Uganda, Matia Kasaija, recently announced plans to recapitalize the Uganda Development Bank (UDB), a public enterprise owned by the government of Uganda, with UGX 500 billion (USD 148 million).

by Nisha Koul -

MICROFINANCE PUBLICATION ROUND-UP: The Broadband Effect: Enhancing Market-based Solutions for the Base of the Pyramid, Strengthening Regulated SACCO Societies in Kenya, Microfinance Barometer

“The Broadband Effect: Enhancing Market-based Solutions for the Base of the Pyramid;” by Olivier Kayser, Lucie Klarsfeld and Simon Brossard; published by the Inter-American Development Bank; September 2014; available at http://www.iadb.org/en/publications/publication-detail,7101.html?id=75634

This report examines how private companies are using broadband, a high-capacity internet connection, to improve the efficiency and reach of their operations that are geared towards the “base of the pyramid (BOP) markets” [1].

by Charlotte Newman -

MICROCAPITAL BRIEF: Rwanda’s Microfinance Growth Attributed to Both Existing Institutions, Launch of New Savings and Credit Cooperatives (SACCOs)

The microfinance sector in Rwanda reportedly experienced growth in fiscal year 2012, with gross loans increasing 44.7 percent from RWF 40.7 billion (USD 64 million) to RWF 58.9 billion (USD 92.7 million).

by Kristha Abores -

MICROCAPITAL BRIEF: Savings and Credit Cooperatives (SACCOs) in Rwanda Boost Deposits to $60m, Lending to $54m

During the year ending June 2011, deposits and loans held by savings and credit cooperatives (SACCOs) in Rwanda reportedly increased from USD 35 million to USD 60 million and USD 51 million to USD 54 million respectively.

by Jacqueline Foelster -

MICROCAPITAL BRIEF: Central Bank of Kenya to Connect Deposit-Taking Microfinance Institutions (MFIs), Savings and Credit Cooperatives (SACCOs) with Existing Reporting Systems; Small and Micro Enterprise Programme (SMEP) Announces Plans to Transform into Commercial Bank

The Central Bank of Kenya (CBK), Kenya’s central banking authority, recently announced plans to connect deposit-taking microfinance institutions (MFIs) and savings and credit cooperatives (SACCOS) with existing credit reporting systems that commercial banks have been required to use since 2008 [1].

by John Howard-Smith -

MICROCAPITAL BRIEF: Uganda’s Microfinance Support Centre Limited (MSC) Moves to Recover Unpaid Loans from SACCOs

Uganda’s Microfinance Support Centre Limited (MSC), a government outfit that supports savings and credit cooperative organizations (SACCOs) in the country, has hired unnamed officials to recoup unpaid loans from SACCOs in northern Uganda.

by Hio Kyeng Lee -

MICROCAPITAL BRIEF: Bypassing Microfinance Institutions, Uganda Savings and Credit Cooperatives (SACCOs) to Get Funds Directly From Government-Run Microfinance Support Centre (MSC)

Bypassing microfinance institutions (MFIs), the Microfinance Support Centre (MSC), a government institution, will channel funds directly to Savings and Credit Cooperatives (SACCOs) which will in turn provide affordable credit through loan products to support agricultural production. 

by Bharathi Ram -

MICROCAPITAL STORY: Lira Women Savings and Credit Co-operative Organization (SACCO) of Uganda Faces Audit Over Impropriety

Following complaints of financial mismanagement by the Lira Women Savings and Credit Cooperation Society (SACCO), the Ugandan State Minister for Finance in charge of Microfinance, Ms. Ruth Nankabirwa has stated that a special team of auditors will be sent to examine accounts of the Lira SACCO. According to a press release on Monitor Online, Ms. Nankabirwa, while speaking to members of the SACCO at their Lira office, assured them that the problem would be solved [1]. In this regard, Ms. Nankabirwa was also quoted as saying that the ‘government would give the organization more money’. (Monitor Online is the online edition of the Ugandan newspaper, Daily Monitor [2]. Established in 1992 it is jointly owned by the Nation Media Group [3] and five other undisclosed individual shareholders).

by Goda Thangada -

MICROCAPITAL STORY: Oikocredit Loans $2.3m to Microfinance Institutions Kitunda SACCO, Intellekt, FMFB Tajikistan, and PMRCA Perelik

For the month of April, the Netherlands-based Oikocredit Ecumenical Development Cooperative Society, a microfinance funding source, reported four loans to the CGAP Microfinance Dealbook, a monthly report on microfinance capital market transactions. Oikocredit granted a one-year USD 75,000 loan to the Kitunda SACCO in Tanzania, a four-year loan of USD 91,000 to Intellekt of Russia, a three-year loan of USD 2 million to the First Microfinance Bank of Tajikistan (FMFB), and a three-year USD 132,000 loan to PMRCA Perelik in Bulgaria. Oikocredit provides loans to about 500 microfinance institutions in 70 countries around the world. Between January and March 2009, Oikocredit provided USD 19.2 million in new loans in 69 countries. The organization currently funds 758 projects of which 501 are microfinance projects, the rest involving other types of social service. Through microfinance alone, Oikocredit claims to reach 16.8 million people. Oikocredit distributes its funding as follows: 40 percent in Latin America, 14 percent in Africa, 27 percent in Asia, 18 percent in Central and Eastern Europe, and 1 percent elsewhere. In November, MicroCapital reported that USAID and Oikocredit would partner together to contribute USD 36.2 million to microfinance institutions (MFIs) over the next ten years.

by Bharathi Ram -

MICROCAPITAL STORY: Uganda Government to Set up Regulatory Body to Monitor Work of Savings and Credit Co-operative Organizations (SACCOs)

The Government of Uganda is to set up a body to license and regulate the work of the Savings and Credit Co-operative Organizations (SACCOs) of Uganda, according to a press release on the Ugandan newspaper Monitor. The announcement was made by Ms.Ruth Nankabirwa, the state minister for Micro Finance, at a rural financial service sensitization program in the Kiboga District of Uganda. Ms. Nankabirwa stated that the new regulatory body was a move to protect the Ugandan public from conmen and also to stop embezzlement of savers’ money collected by SACCOs. Elaborating on the need for the new monitoring body, Ms. Nankabirwa brought to focus the fact that several Ugandan MFIs tend to operate for a few months in a particular region and then relocate to another region thereby causing many Ugandans to lose money. She mentioned that the new board would identify and follow-up on all MFIs involved in such questionable activities and ‘bring to book all unscrupulous financial managers’. This announcement on the establishment of the new body follows an initial announcement back in July 2008 by Mr.Henry Mbaguta, the assistant commissioner in-charge of microfinance in the Ministry of Finance, Planning and Economic Development.